ANANT BAJAJ TRUST,MUMBAI V. DEPUTY DIRECTOR OF INCOME TAX, BENGALURU

MA 226/MUM/2024

AI Insights

The case involves the Anant Bajaj Trust, which filed a miscellaneous application against the Deputy Director of Income Tax concerning an income adjustment made under Section 143(1) of the Income Tax Act during the assessment year 2022-23. The Trust argued that the adjustment was made without a reasonable opportunity for them to be heard, thus violating the principles of natural justice and the specific provisions of Section 143(1)(a). The ITAT acknowledged the oversight in their previous ruling and decided to revisit the issue, allowing the application and restoring the appeal for further consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474473 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 04-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAVIN SALUNKHE
• Assessee Lawyers: VASANTI PATEL
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 143(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A”, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, JUDICIAL MEMBER M.A. 226/Mum/2024 (Arising out of ITA No.1995/Mum/2024 (Assessment Year: 2022-23) Anant Bajaj Trust 2nd Floor, Bajaj Bhawan Jamnalal Bajaj Marg Nariman Point Mumbai-400 021 PAN: AAGTA3192B vs Dy.Director of Income Tax, Post Bag No.2, Electricity Post Office, Bengaluru, Karnataka-560 100 APPLICANT RESPONDENT Assessee by : Ms. Vasanti Patel Respondent by : Shri Pravin Salunkhe (SR DR) Date of hearing : 17/01/2025 Date of pronouncement : 04/02/2025 O R D E R PER ANIKESH BANERJEE: The instant miscellaneous application filed by the assessee which is arising out of the order dated 26/08/2024 passed by the Tribunal in ITA No.1995/Mum/2024 for A.Y. 2022-23. The assessee applicant pointed out that the Tribunal, while passing the order, has inadvertently omitted to consider ground No.1 raised by the assessee related to adjustment of income under 2 MA No.226/Mum/2024 Anant Bajaj Trust section 143(1) of the Act without giving reasonable opportunity to assessee for the said adjustment. The assessee further submitted that the adjustment to section 143(1) is required to be given an opportunity to the assessee for explanation. 2. Ground 1 of the assessee raised by the assessee in the appeal reads as below:- \"1. ADJUSTMENT/LEVY OF TAX UNDER SECTION 143(1) OF THE ACT: On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-Tax (Appeals) [CIT(A)] failed to appreciate that the learned Deputy Director of Income Tax, CPC (The Assessing Officer) erred in resorting to levy of surcharge at a higher rate while processing the Return of Income under Section 143(1) of the Act. 1.2 It is submitted that the adjustment has been made without affording to the Appellant any opportunity of being heard and the same is in gross violation of principle of natural justice and also not in accordance with the provisions of Section 143(1)(a) of the Act. Hence, the said adjustments may kindly be struck down/set aside. [This ground of appeal is further continued in the statement attached herewith].” 3. In our considered opinion, we find that the Bench inadvertently overlooked Ground No. 1 raised before it, which pertains to the adjustment of income under Section 143(1) without providing the assessee an opportunity of being heard. Accordingly, we recall the order dated 26/08/2024 passed by the ITAT to adjudicate Ground No. 1 raised by the assessee. The appeal is restored to its original number, and the registry is directed to schedule the appeal for hearing in due course. 3 MA No.226/Mum/2024 Anant Bajaj Trust 4. In the result, miscellaneous application filed by the assessee is allowed. Order pronounced in the open court on 04th day of February 2025. Sd/- sd/- (AMARJIT SINGH) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai,दिन ांक/Dated: 04/02/2025 Pavanan Copy of the Order forwarded to: 1. अपील र्थी/The Applicant , 2. प्रदिव िी/ The Respondent. 3. आयकरआयुक्त CIT 4. दवभ गीयप्रदिदनदि, आय.अपी.अदि., मुबांई/DR, ITAT, Mumbai 5. ग र्डफ इल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, Mumbai "